5 Signs That Your Business Needs an ERP System - EffectiveSoft
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5 Signs That Your Business Needs an ERP System

Once your business starts to grow from a small company with few employees to a big one with numerous departments operating in several states, you may find yourself in trouble.
4 min read
5 Signs That Your Business Needs an ERP System

    It is no longer possible to effectively manage the staff, monitor numerous stores and warehouses, and maintain inventory at the same time. As soon as you understand that your company needs help, you are definitely in search for the way out. And it is often an ERP system that comes to rescue your business. We have processed a number of ERP system pros and cons and found out top 5 signs which show that your business needs to think of such a solution.

    5 reasons for ERP system implementation

    ERP system advantages

    Your employees are buried under the piles of different software

    Do your employees seem very busy, doing little at the same time? Some of them may even be edgy and nervous because their computers work too slowly. Taking a closer look at the problem, you may notice that the staff have a lot of various software programs running altogether. Nobody likes to switch from one application to another to accomplish the tasks, neither do your staff. Thus, an awkward situation takes place, when software, built to help with working activities, does the opposite thing. For example, your specialists use one system to track payables and another one to record customers’ orders.

    Your departments lack collaboration

    The key to successful business performance is information sharing. It is impossible to share and store information effectively when the company uses different applications for each task. Your employees either have to waste time creating reports, or just remain silent about lots of data they have. Both of these options are not attractive, as they take much time and limit the access to useful information. These problems can be resolved by implementing a single ERP system where all the employees will be able to create any reports they need.

    You spend too much time on inventory management

    Businesses of any scale need to cope with inventory management and resolve related issues. For example, both a leasing company and a huge supermarket with different staff numbers need to handle huge amounts of products. ERP systems often have specific features that help to perform effective inventory management for any business.

    You have too many staff

    Sometimes business owners realize that their staff cannot handle all the tasks, and they decide to hire new employees. The number of workers grows, payroll costs increase, but the business performance does not improve. The more employees the business has, the harder it gets to manage all these human resources. That is why companies need to consider implementing software that can automate such tasks.

    Your customer satisfaction sinks like a stone

    How much do you know about your customers and how deep is your knowledge? The key to a successful customer satisfaction management lies in the understanding of their needs and requirements. If you collect and analyze data about your customers you gain a strong competitive advantage. Also, it is important to manage quick order processing, timely customer service and so on. If you perform all of these actions separately or on paper, there is no wonder why customers prefer your competitors.

    To sum up, with the help of an ERP system you can manage nearly every business process with lower costs.

    ERP software covers all areas of business activities:

    • Accounting
    • Finance
    • Human resource management
    • Marketing and sales
    • Equipment maintenance
    • Manufacturing, and more


    By ERP system development you create a common data space and solve your employees’ problems. A single ERP system allows to store, process and share information. It helps to manage human resources and inventory of your company, improve customer service and satisfaction within a single solution. It also keeps the data safe due to the security and access permissions. ERP system components improve customer service and automate core business activities so that your company is operated effectively.

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